| Source: | http://qa.muftisays.com/?4421 |
| Question ID: | #4421 |
| Question: Are these fixed-fee loan terms halal or shariah compliant? | |
| Assalamu'alaikum,
I am a therapist and have started my own practice. Alhamdulillah I can finally sustain my monthly business costs but growth is slow as I do not have enough capital to advertise/expand to at least contribute to my personal financial targets. I'm facing either further investment into my business (via a loan) or closure. I have been offered a loan with a "fixed fee" and these are the known terms: 1) The fixed fee is a percentage of the loan amount (10% or less); 2) The actual loan amount and fixed fee will vary (based on loan amount) but there is no interest rate, no other costs after the loan is disbursed; 3) The loan must be repaid within a specified time-frame (e.g., 1 year). Is this loan truly interest-free and/or halal? |
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| Answered by: | Ulamaa ID 04 (London) |
| Date: | 17/03/2020 00:17am |
بسم الله الرØمن الرØيم
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| Mufti Qamruzzaman London, UK |
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| www.MuftiSays.com | |